Answer:
Attached
Explanation:
This question doesn’t seem to be complete however I’ll try to answer it to the best of my knowledge.
APR refers to the Annual Percentage Rate. APR is applied on whatever money is borrowed from a Credit Card and then the monthly interest is calculated. Minimum Payment is the minimum amount that needs to be paid from the total amount outstanding in order to avoid penalty being charged on the sum borrowed.
Let me show you an example to demonstrate the concept which will be applicable in almost every scenario:
Month Sum Borrowed Outstanding Interest Minimum Payment
1 $3,000.00
2 $4,500.00 $3,000.00 $57.50 $60.00
3 $5,600.00 $4,500.00 $86.25 $90.00
4 $8,000.00 $5,600.00 $107.33 $112.00
5 $9,000.00 $8,000.00 $153.33 $160.00
6 $1,000.00 $9,000.00 $172.50 $180.00
7 $2,800.00 $1,000.00 $19.17 $20.00
*Assume the Limit of Credit Card to be $ 10,000
*Example of Interest Calculation in Month 2 - ($3000*0.23)/(12)
*Example of Minimum Payment Calculation in Month 2 - ($3000*0.02)
